“....do not expect the long-run growth potential of the U.S. economy to be materially affected ..... if–and I stress if–our country takes the necessary steps to secure that outcome.”

steps to secure that outcome should be the one and only thing the next US President should do.

10:19 am August 26, 2011

Anonymous wrote:

The bottom line is Bernake has no plan and the Fed is out of ammunition, obviously and sadly he can't tell the truth to the politicians/public without major panic.... This is going to be a long and painful process...We are in a depression whether we want to admit it or not......

Bernanke does NOT have the tools to fix this. He can't do anything about China's unwillingness to import American goods...lowering interest rates only caused gas prices to go up increasing our trade deficit with OPEC and the trade deficit with China actually increased with QE. Our elected leaders need to correct this.
Bernanke is at the mercy of Congress who gets bribed to sell this country out. He actually came forward and spoke out against TARP.
Bernanke cannot create a company. Bernanke cannot force the banks to lend. Bernanke doesn't write earmarks and pork into massive stimulus packages.
He's being used wrong by Congress. Those in Congress, ESP Ron Paul shills...ALL OF THEM don't want politicians to be held accountable for horrible fiscal policies and excessive spending that did NOT better the economy.

Mr. Bernanke's remarks read like a summary statement of a college term paper. Let's hear some real expertise as it relates to the Fed's responsibilities instead of simply stating the conditions that current exist, which any well read person could do without Mr. Bernanke's help. Get serious and specific.http://propertymortgageinvestment.com/tag/real-estate

10:51 am August 26, 2011

Lawrence in New York wrote:

The only financial/liquidity crises was caused by the government, Bush's first then continued into Obama's, and the housing slump was serious and it is pathetic that it is still with us, given that allowing the markets to value the toxic assets, which would hurt for sure, but would have put this crises to and end by now. The international crisis was and is a Euro problem not of America's doing.

The magnitude of this man's perfidy is enormous because re the above, he already knows it. Bernacke is a Keynesian.. And as such be believed that government stimulus is a plus for the economy. And as such those are the policies he followed. And I am not talking about that TARP pocket change and the pork barrel Stimulus. I am talking about the Fed's open window that pumped undoubtedly 15 or 2o trillion dollars and that the Fed spent 14 trillion dollars last year alone, buying European Banks debt instruments.

And none of this had an effect. As this man knows. He knows his advocacy, he knows he acted on it to a tune of probably, all together, 40 - 50 trillion dollars, maybe 30 - 40 trillion, without any constraints on what he wanted to do according to his advocacy, he had a free hand, and he knows it, and it did nothing, and he knows that too.

If you people think the Fed's (and Treasury's) intervention into the markets were limited to the 890 billion TARP program and the 900 billion Stimulus, then you just have no idea, none at all.

11:26 am August 26, 2011

John Reilly wrote:

This was a hugely important speech. Bernacke took a thinly veiled swipe at the obstuctionism of the Tea Party. He all but stated that job creation is essential for any real recovery because monetary policy has reached its limits. Congress must act on fiscal policy and it is the brinksmanship (of the Tea Party) which is the obstacle.

11:32 am August 26, 2011

Dan wrote:

lol @ John Reilly (alias for a Congressional or White House operative) for those Tea Party shots.

11:37 am August 26, 2011

Noticed By wrote:

"Finally, and perhaps most challenging, the country would be well served by a better process for making fiscal decisions."

And what process would this be "Oh Great Bernank"? Skip the legislative branch entirely?

12:00 pm August 26, 2011

Don2175 wrote:

The recovery is lousy - Duh!!!
Financial stress is a “significant drag” - Duh!!!
What the Fed will do - "Stand around and watch!!!"
Long-run prospects for the U.S. are undiminished, if… "Pep talk or Whistling past the grave yard???"
But long-term unemployment could leave a deep scar - Duh!!!
Housing policy matters - Duh!!!
Europe matters - Duh!!!
Fiscal policy matters, and not just deficit-reduction - "Politics as usual!!!"

12:15 pm August 26, 2011

Anonymous wrote:

David. This was new!
"Under these unusual circumstances, policies that promote a stronger recovery in the near term may serve longer-term objectives as well. In the short term, putting people back to work reduces the hardships inflicted by difficult economic times and helps ensure that our economy is producing at its full potential rather than leaving productive resources fallow":http://thefaintofheart.wordpress.com/2011/08/26/%E2%80%9Crecognition%E2%80%9D/

12:58 pm August 26, 2011

Expect More wrote:

Is it just me or are all the World’s financial leaders really just wildly swinging at the economic piñata?

1:09 pm August 26, 2011

Fred C. wrote:

My God, he said nothing; mostly because he doesn't know what to say, or do!! And after that nothing speech, the market sees positive signs and will wait until September to hear his, and Pres. Obama's, great solutions. Was it not FDR's Treasury Sect. that said, in 1939, paraphrasing, that we have thrown money at this problem, time and again, and it has not worked. Those who do not study history, are doomed to relive it. We are in trouble with the polices that are in place right now.

1:55 pm August 26, 2011

Karl Marx wrote:

Capitalism is self-destructing again. The saddest part is watching my sister on her death bed with cancer worried about her credit score. What a crazy way to live and die.

3:46 pm August 26, 2011

Molotov wrote:

He kicked the can down the road to the September meeting regarding QE3. The stock market rallies. I wish he'd just disavow QE3 and let us get on with the pain and recovery.

4:27 pm August 26, 2011

Eco-nomist wrote:

Absolute drivel from a man who is highly educated and wields so much power with the world hanging on his every syllable. This has to be an example of ultimate power ultimately corrupts absolutely. Despite the markets giving a clear message to him he refuses to accept reality that this is the inevitable great correction.
This is the correction of the endless credit expansion that has rolled on since the Second World War. As it gained pace into the early 2000's it unfolded into creative destruction. A process that will correct the poor financial judgements and bad debts of the past 40 or so years. The more the can is kicked down the road the bigger the problem becomes and the beared one can surely see this and is loosing the power to stop the market from finding its intrinsic value. Let the correction correct the mistakes of the past. It is a crime of the worst proportions to pass this problem onto our children and subsequent generations. The greed, corruption and control by the worlds central bankers supported by short sighted politicians and a pandering ruling class got us into this mess. Now the ones who said there was no problem are charged with fixing a problem of mammoth proportions that they created. Keynesian economics is a dinosaur wake up Bernie before you are also extinct. The great correction will not be that bad if aloud to unfold. A few short years of pain and it will be new business but not business as usual with the same deluded clowns running it.

A lot of smart people on here. Another classic FED misdirection corruption ploy today. Gold up, the DOA dollar down again. I rest my case.

8:12 pm August 26, 2011

absolute power zero responsibility wrote:

one man holding so much power is not healthy.

we have become hostage to his whim.

8:33 pm August 30, 2011

Anonymous wrote:

Actually, I am impressed by the majority of comments made by people , (I count 20 out of 22), who have no clue what they are talking about. Here is a clue. it is called cause and effect - empirical, evidenced, you pick the word: since 1925 the GOP has produced 2 historic for the time, financial crises, one leading to a major depression x 10 years, mini financial crisis with savings and loans, plus another 20 years of recessions, and a never before total collapse of the housing market which at the time was 55% of the economic production - out of the past 80 years and created roughly less than 30 million jobs net, to the Democrats' 70million. This financial crisis was so severe, and soooo fraught with pure total 100% corruption combined with the one time only turned forever tax cuts for the top 1%, has had an aggregate effect of negative production under Bush and a tea party extremism waging congressional extortion. Never before in our history has a public disinformation campaign been waged at the level of producing popular delusion which then holds the congressional policy making hostage. Fiscal policy is the answer, has always been the answer and unless this is nipped in the bud, the UN may have to step in to rescue the nation from this extremism.

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